CBOE submitted an application to list and trade shares of Global X Bitcoin Trust in August 2023, but did not receive approval on January 10 with other Bitcoin spot ETF applications.
Financial company Global X filed to withdraw its Bitcoin spot ETF, proposed weeks after the United States Securities and Exchange Commission (SEC) approved a series of ETFs, becoming the first ETF applicant to do so. The decision comes amid regulatory uncertainty and market volatility for Bitcoin.
The company had about $51 billion of assets under management in its ETFs worldwide, as of December 2023, according to its website.
Following the approval of BTC spot ETFs, many speculate that the SEC will soon give the green light to spot Ether exchange-traded products (ETFs). The commission has already pushed back deadlines for bids from asset managers BlackRock and Grayscale, with final decisions expected to be made in May.
Although data showed that as of January 26 there had been approximately $5 billion in outflows from the Grayscale Bitcoin Trust following its conversion to an ETF, there were $759 million in net inflows into all spot Bitcoin ETFs approved by the SEC on the 10th. from January.
The Chicago Board Options Exchange (CBOE) filed an application to list and trade shares of Global X Bitcoin Trust in August 2023, but like other applicants, the SEC delayed a decision on the Bitcoin ETF. However, it did not receive approval on January 10 with other Bitcoin spot ETF applications.
Global X Application Withdrawn
Specifically, in a notice issued on January 30, the United States Securities and Exchange Commission (SEC) announced that CBOE BZX had withdrawn its application to list and trade shares of the Global X Bitcoin Trust. Particularly, even though the SEC had expanded the evaluation of the application twice, in September and November, it was reported that the exchange officially withdrew its proposal on January 26.
The withdrawal of an application does not necessarily mean that the possibility of a Bitcoin ETF is completely ruled out. Indeed, they may reconsider and submit new applications in the future, taking into account changes in the regulatory landscape and market conditions.
Global X’s withdrawal reflects the cautious approach adopted by some industry players, who are wary of the regulatory landscape and potential risks associated with cryptocurrency investments. However, this should not deter people from recognizing the immense potential and transformative power of blockchain technology.
Regulatory Challenges and Bitcoin ETF Launch
Global X was not the only Bitcoin ETF hopeful that failed to gain regulatory approval. Pando Asset Management and 7RCC also found themselves in a similar situation.
In fact, Pando Asset AG entered the race in December with its Bitcoin spot ETF proposal, but has so far not received approval.
On the other hand, 7RCC submitted a Bitcoin spot ETF proposal in December. However, like Pando Asset AG, its proposal has not yet been approved by regulators.
As a curious fact, after receiving regulatory approval, 11 Bitcoin ETFs were launched on the market in early January. These funds include well-known financial institutions such as Grayscale, BlackRock and Fidelity. Since their launch, these ETFs have experienced capital outflows of billions of dollars, primarily in the case of GBTC.
To sum up, all of this shows that the path to approval for Bitcoin ETFs can be challenging. However, as time progresses, adjustments may be made and clearer regulations may be established to allow the approval of these financial products.
By Audy Castaneda
